I want a guy who is licensed, will warranty the work and carry insurance that will protect my property in case he messes up. flood burst pipe/fire/boiler blows up etc...but when hiring carpenter, painters or flooring people ...do I really care if they are insured or not. those folks will show you certificate of liability insurance ...which does not protect the guy from injuring themselves on the property. how much damage a painter can cause or flooring guy ?

Is there a clause you would recommend to protect me in this scenario, other than having a contingency?

Smell the carpet, especially if small dogs.Figure out what you can do to better weed out high maintenance tenants, annoying is not a protected class.

Can I/should I dilute my liability and protect my properties by forming separate entity to manage my own properties?

Thanks so much for the informative response, Ned.I've not heard of RESPA before, good to know there are already protections in place for this sort of thing.Also interesting that you mention the title company is also liable.

If they were everyone would be rich.In terms of unit mix, the more units in a building the greater protection against vacancy loss, however the more units the higher the priceIf you do not have 20% to put down odds are that you will have to use FHA financing which is only available for owner occupants.Where I live I could not get a good cashflowing property in an area I would like to live, so I buy in more urban areas.

Although I can't do anything about how they look inside, I was wondering what the best way to protect them from water damage?

As for Derek's BP picture, he hasn't thought about Child Protective Services citing him for being too thrifty to buy his kid a stroller and hauling him around in a wheelbarrow.

Whether you chose to transfer (and how to execute the transfer) the property to you personally or an entity is an asset protection decision that you have to make with your legal and tax advisors.The LLC option would allow you to receive the tax benefits just like it was in your name if you DO NOT elect to be "an LLC taxed as an S Corp."

Joel is 100% right about protecting yourself and your real estate assets.best wishes on your educational journey